A housing analysis from The Skipton Group reveals a crisis of an ‘alarming nature and scale’, with millions of adults living with parents and 98% of them unable to afford to buy a property in their local area.
The Skipton Group Home Affordability Index, produced with Oxford Economics, examined the reason for the sharp rise in the number of adults living with parents, which had reached 4.9 million by the time of the latest UK census. It found that in every region of Great Britain, fewer than 10% could afford an average first-time buyer home. In London, the East of England and the South West, affordability dropped to below 1.5%.
Raising a deposit did little to remove barriers: 97% of adults living with parents who had managed to raise the required upfront sum were unable to buy due to housing costs that would result in unsustainably high affordability thresholds.
The research examined affordability challenges faced by renters, first-time buyers and homeowners by age, income, geography and family type and by utilising data from Skipton Group businesses, the ONS Wealth and Assets Survey, the ONS Living Costs and Food Survey, the Bank of England and other external sources. The analysis and forecasting included all 363 local authority areas across Great Britain, as well at regional and national levels.
The findings highlight a crisis with intergenerational impact, Skipton says, with parents of adult children unable to downsize and release an average of £72,400 in equity or save an average £2,400 a year in rent. For lower-income households, the equity could amount to 60% of non-property wealth.
Alongside the quantitative research, a survey of 2,000 adults across living with parents across Great Britain revealed the psychological toll of being unable to purchase a home. Just over half (51%) said they felt they were missing out on their best years and felt a sense of lost youth. The most common frustrations with their living situations were a lack of personal space, limited freedoms and arguing with their parents.
‘This data lays bare the systemic failure of our housing ecosystem’, said Stuart Haire, CEO of Skipton Group.
“It’s a failure that is locking millions of young people out of independence, home ownership, and long-term financial stability. When 98% of adults living with their parents can’t afford to leave, they’re not just facing a housing crisis – they’re facing a crisis of opportunity.”
The analysis also showed that affordability has stagnated, with the buying affordability score calculated for the index remaining largely stable but living affordability worsening.
To address the challenges faced by the millions of adults who say they feel trapped by their living situation and unable to buy their own homes, Skipton Group is advocating for the reform of property taxes to remove the burden on first-time buyers and allow older owners to downsize.
Haire explained:
“We believe reforming property taxes to remove the burden on first-time buyers would make a significant difference, including improving the ease and flow of the market. A healthy market relies on free movement: older owners downsizing, families upsizing, and importantly, for this Index, first-time buyers getting on the ladder. Policy should encourage that flow, not block it.
“And we believe that the Government should protect and reform the Lifetime ISA, which in our experience has been a valuable tool for many to save for a deposit, but needs reform to meet the challenges of today and for the future.”
The Skipton Group Home Affordability Index for September 2025, including data and methodology, can be seen at https://www.skiptongroup.com/wp-content/uploads/2025/09/Skipton-Affordability-Index-Sep-2025.pdf
